ActivIdentity plans $10M stock buyback

ActivIdentity Corp. said Thursday its board has approved a stock repurchase program for up to $10 million, or about 8 percent, of the company's outstanding shares.

Fremont-based ActivIdentity (NASDAQ:ACTI) said the shares of common stock may be purchased in the open market from time to time over the next 12 months.

The timing and amount of repurchase transactions will depend on market conditions and corporate and regulatory considerations and may be suspended or discontinued at any time.

"Based on the current market prices, we believe that our stock is undervalued and that the repurchase program is a good investment of available funds," said CEO Grant Evans. "Our strong balance sheet enables us to actively invest cash in areas that we believe will drive future value for shareholders, such as stock repurchases and growth initiatives."

The company's shares closed the day Wednesday at $2.50.

ActivIdentity had 46.1 million shares of common stock outstanding and up to 2 additional shares to be issued pursuant to the merger agreement dated Dec. 13, 2009 between the company and CoreStreet Ltd.

In addition the company's cash, cash equivalents, restricted cash and investments totaled approximately $82 million on Dec. 31, 2009.